Report: 90% of Schools Depend on E-rate Funding Every Year

• By Rhea Kelly
• 10/29/24

A new report from Funds for Learning highlights the critical role of the Federal Communications Commission's E-rate program in funding essential technologies and services for K-12 schools. For its 14th annual E-Rate Trends Report, the E-rate consulting and services firm surveyed 2,355 E-rate applicants from a mixture of public and private schools, districts, libraries, and consortia across the United States to find out about stakeholder experience and needs.

The vast majority of respondents (90%) said they can depend on E-rate funding every year, with 94% noting that E-rate funding is vital to their organization's internet connectivity goals. More than 88% indicated that E-rate funding is essential in ensuring equitable access to internet services, particularly for underserved and rural communities.

Cybersecurity remains a top concern for E-rate applicants, the report found, with more than 95% of survey respondents agreeing that network security and management products and services should qualify for Category 2 E-rate funding. At the time of the survey, the FCC's Cybersecurity Pilot Program had not yet been finalized, but 86% of respondents expressed interest in participating in the program. Cybersecurity technologies or services that organizations said would be part of their application include:

• Intrusion detection/prevention (cited by 87% of respondents);
• Cybersecurity education and training (83%);
• Content/malware filtering and DNS security (81%);
• Next-generation firewalls (79%);
• Endpoint security (74%); and
• Multi-factor authentication (60%).

However, Funds for Learning noted that the Cybersecurity Pilot may not be living up to initial expectations. "Anecdotally, interest in the pilot seems to have waned as applicants have learned more about the program's funding limitations," the report said.

The survey also asked about future plans and expectations. Key findings include:

• 40% of respondents expect their organization's internet bandwidth needs to increase by 25% over the next three years.
• 69% said they will need to upgrade their current WiFi network within one year or one to three years.
• By the end of funding year 2025, 57% of respondents expect to have requested 100% of their available Category 2 budget.

"The findings in this report highlight the critical role of the E-rate program in bridging the digital divide for schools and libraries," said Brian Stephens, director of stakeholder engagement of Funds For Learning, in a statement. "However, we must prioritize expanding funding eligibility for cybersecurity services to protect our students and educators in an increasingly complex digital landscape."

The full report is available on the Funds for Learning site (registration required).